Workers’ Compensation Board
The enacted budget makes no changes to the Executive Budget (analysis as of 4/4/07).
The Executive Budget recommends (analysis as of 2/1/07):
A SFY 2007-08 workforce of 1,539. There is no change from the adjusted FTE level for SFY 2006-07.
- The total appropriation for Personal Service is $84.7 million, an increase of 3.0%
- An All Funds increase of $22.8 million, (+12%) from SFY 2006-07. According to the Senate and Assembly the increase over the prior year is attributable to a $17 million increase in the receivership of self insured groups that have entered bankruptcy, and contingency in the event that more self-insured pools become insolvent, as well as, a $5.8 million increase in salary adjustments and inflationary increases of current programs.
- An increase of $19.3 million (+27.6%) in nonpersonal services appropriation in the Workers’ Compensation Program (Special Revenue – Other). Since $48 million of this $89. 4 million appropriation is for contractual services it must be assumed that most, if not all, of the increase is for this purpose. The purpose and use of this appropriation for contractual services and the increase should be clarified at statewide labor management and if used for consultants whether the work can be done by state employees should be discussed.
- The Executive Budget shows that the Workers’ Compensation Board employed an estimated 96 employees under consultant contracts in SFY 2006-07 at an estimated cost of $12.8 million or an average cost of $132,812 per consultant contract employee. It is estimated that the number of employees employed under consultant contracts will stay the same in SFY 2007-08. Consultant contract employees will be paid $13 million in SFY 2007-08 or an average cost of $135,469 per consultant contract employee, a 2% increase over the average cost in SFY 2006-07. The purpose and use of these contract employees and whether they can be replaced by state employees should be clarified at statewide labor management.
Workers Compensation Board Program Details-State Operations Enacted Proposed Enacted Change in Percent Program 2006-07 Budget 2007-08 Budget 2007-08 Budget Appropriation Change All Funds $190,046,000 $212,803,000 $212,803,000 $22,757,000 12.0% Special Revenue-Other (SRO) $190,046,000 $212,803,000 $212,803,000 $22,757,000 12.0% Personal Services $82,225,000 $84,727,000 $84,727,000 $2,502,000 3.0% Contractual Services $81,283,000 $81,283,000 Disability Benefits (SRO) $7,457,000 $7,670,000 $7,670,000 $213,000 2.9% Personal Service $3,723,000 $3,819,000 $3,819,000 $96,000 2.6% Regular $3,794,000 $3,794,000 Holiday/overtime compensation $25,000 $25,000 Nonpersonal Service $3,734,000 $3,851,000 $3,851,000 $117,000 3.1% Supplies and materials $66,000 $66,000 Travel $7,000 $7,000 Contractual Services $1,831,000 $1,831,000 Equipment $15,000 $15,000 Finge Benefits $1,750,000 $1,804,000 $1,804,000 $54,000 3.1% Indirect Costs $130,000 $128,000 $128,000 ($2,000) -1.5% System Modernization (SRO) $38,136,000 $39,417,000 $39,417,000 $1,281,000 3.4% Personal Service $4,845,000 $4,970,000 $4,970,000 $125,000 2.6% Regular $4,898,000 $4,898,000 Holiday/overtime compensation $72,000 $72,000 Nonpersonal Service $33,291,000 $34,447,000 $34,447,000 $1,156,000 3.5% Supplies and materials $56,000 $56,000 Travel $10,000 $10,000 Contractual Services $31,396,000 $31,396,000 Equipment $470,000 $470,000 Fringe Benefits $2,277,000 $2,348,000 $2,348,000 $71,000 3.1% Indirect Costs $170,000 $167,000 $167,000 ($3,000) -1.8% Workers' Comp Prog. (SRO) $144,453,000 $165,716,000 $165,716,000 $21,263,000 14.7% Personal Service $73,657,000 $75,553,000 $75,553,000 $1,896,000 2.6% Regular $75,183,000 $75,183,000 Temporary service $120,000 $120,000 Holiday/overtime compensation $250,000 $250,000 Nonpersonal Service $70,099,000 $89,422,000 $89,422,000 $19,323,000 27.6% Supplies and materials $1,400,000 $1,400,000 Travel $1,500,000 $1,500,000 Contractual Services $48,000,000 $48,000,000 Equipment $300,000 $300,000 Fringe Benefits. $34,619,000 $35,691,000 $35,691,000 $1,072,000 3.1% Indirect Costs $2,578,000 $2,531,000 $2,531,000 ($47,000) -1.8% Maint.Undistrib. $697,000 $741,000 $741,000 $44,000 6.3% $0 MU - Occupational Injuries and Illness $360,000